Egypt’s parliament approves cabinet reshuffle, with 13 new ministers

Egypt’s parliament approved a major Cabinet reshuffle on Tuesday as the North African nation grapples with economic challenges and mounting regional tensions. The reorganization, which affected 13 ministerial portfolios, aims to address the country’s financial struggles while maintaining stability in key positions.

The shuffle primarily targeted economic portfolios, with President Abdel Fattah el-Sissi nominating World Bank senior economist Ahmed Rostom as the new minister of planning. Mohamed Farid Saleh, who previously chaired the Financial Regulatory Authority, will now lead the Ministry of Investment. These appointments signal a focused attempt to strengthen economic leadership during a critical period.

While the reshuffle brought new faces to ministries including housing, higher education, communications, youth and sports, crucial portfolios such as foreign affairs and defense remained unchanged, suggesting continuity in Egypt’s security and diplomatic approaches during turbulent regional times.

The revised Cabinet also includes two women ministers. Randa al-Menshawi has been appointed to head the Housing Ministry, while Gihane Zaki will serve as the minister of culture. Additionally, the State Ministry of Information, which had been dissolved in 2021, has been restored with Diaa Rashwan, chairman of the State Information Service, named as its minister.

Egypt’s economy has faced a perfect storm of challenges in recent years. The implementation of austerity measures following an International Monetary Fund program in 2016 had already created economic strain when the COVID-19 pandemic struck. This was followed by economic repercussions from Russia’s invasion of Ukraine, which disrupted global food supplies and energy markets—particularly significant for Egypt, the world’s largest wheat importer.

More recently, the Israel-Hamas conflict in Gaza and Houthi attacks on Red Sea shipping routes have further destabilized the region and directly impacted Egypt’s economy. The Suez Canal, which typically generates approximately $8 billion annually for Egypt, has seen significant revenue declines as shipping companies reroute vessels around Africa to avoid attacks, cutting off a vital source of foreign currency for the struggling economy.

Despite these challenges, IMF Managing Director Kristalina Georgieva recently expressed confidence in Egypt’s reform efforts, noting the country’s “strong commitment to achieving the economic reform program’s objectives” and implementing difficult but necessary measures. She indicated that a final review of Egypt’s economic reform program was nearing completion, potentially opening the door for additional financial support.

However, the impact of these economic reforms has fallen heavily on ordinary Egyptians. Rising costs for essentials, higher fuel prices, and increased subway fares have coincided with a significant devaluation of the Egyptian pound against foreign currencies. According to government figures, approximately 30% of Egypt’s 105 million people now live below the poverty line.

There are some positive indicators amid the challenges. Recent data from the Central Agency for Public Mobilization and Statistics showed the annual inflation rate at 10.1% in January, a slight improvement from December’s 10.3%. The government has also attempted to ease financial pressure on workers by raising the minimum monthly wage for both public and private sectors to 7,000 pounds ($138), up from 6,000 pounds ($118.58).

This Cabinet reshuffle, the first since July 2023, comes at a pivotal moment as Egypt attempts to navigate economic recovery while maintaining stability amid regional conflicts. The focus on economic portfolios suggests that addressing financial challenges remains the administration’s top priority as it works to stabilize the currency, control inflation, and create sustainable growth opportunities.

The success of this restructured Cabinet will likely depend on its ability to balance necessary economic reforms with the urgent social needs of Egypt’s growing population, all while managing the complex impacts of ongoing regional conflicts on its borders.